5 Ways To Live Big on a Small Budget According To Frugal Living Experts
Living on a small budget shouldn’t mean having to settle for less. Being savvy with your finances can ensure you to have everything you need and more without going in debt.
Ensuring you’re not overspending on essentials is key, along with being mindful of where you’re devoting your resources. Keep reading to learn how to make the most of your monthly budget.
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1. Shop Insurance Every 6 Months
If home and auto insurance consumes a large percentage of your paycheck, you’re not alone. The average U.S. driver pays $1,163 for car insurance every six months, according to The Zebra. Homeowners insurance premiums average $2,748 per year, according to a separate article also on The Zebra.
Shopping your home and auto insurance coverage every six months can bring major savings, said Russell Moran, Owner of WealthGuard Life. He recently told his broker he was thinking about changing auto insurance coverage and was able to lower his bill for three vehicles — including coverage for his 19-year-old son — down from $568 per month to $248 per month with the exact same coverage.
Moran also changed his home insurance, which saved him $700 per year. In total, he was able to save more than $4,000 per year by sending one email to his broker to negotiate lower-priced home and auto insurance.
“My recommendation is to not be loyal to any specific insurance company, because companies are not loyal to you,” he said. “Get a broker so they can shop around for you.”
2. Negotiate Your Cell Phone Bill
The average monthly phone bill in the U.S. is $196.70 per month, according to NumberBarn. Having a phone might be a necessity, but overpaying for it is not.
Moran cuts costs on his family’s bill by negotiating rates every six to 12 months. He was recently able to reduce his monthly bill by $70, saving a total of $840 per year.
“I have three lines and I've been with a very competitive company for twenty plus years,” he said. “I found another company that was going to give me a better rate, contacted my current carrier and told them what I was doing.”
In addition to saving $70 per month, he was also able to add a fourth line for his youngest child.
3. Cancel Unused Subscriptions
A CNET survey found that American spends an average of $1,080 per year on subscriptions — which includes almost $200 on subscriptions they don't even use. Chances are, you aren’t excluded from this, so audit your subscriptions.
To do this, Moran advised highlighting every recurring charge on your bank statement and canceling those you haven’t used in the past 30 days. He said to repeat this activity every three months.
Additionally, he recommended removing all shopping apps from your phone. If you really want to buy something, you’ll have to go to your computer. This added step can save you hundreds, he said.
4. Meal Prep on Weekends
Finding the time and energy to make dinner after a long day of work can be a challenge. If you’re like many, this can cause you to go hard on services like DoorDash, that provide an easy, yet pricey solution.
Taking the time to prepare meals in advance can save your family $300-$500 per month, Moran said.
“Meal prep on Sunday, put everything in containers and when you come home tired and hungry, put it in the microwave or the oven and you've got a meal already prepared,” he said.
5. Buy Used Cars
In March 2026, the average cost of a new vehicle was $45,859, compared with $30,166 for a used vehicle, according to JD Power.
Consequently, Moran advised buying a certified pre-owned car and driving it forever.
“I bought a Toyota Tundra, a 2018 model, in 2020 right before COVID,” he said. “It was 2 years old and I already had a little equity in it. When COVID hit and all car values went up, I actually almost doubled the value of my vehicle.”
He noted an increase of this level isn’t typical, but it illustrates the savings potential of buying a used vehicle.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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